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Be the first with the news that moves the market- Novo Resource Corp (TSXV:NVO) has uncovered a broad, gold bearing swale at the Egina mining lease in Western Australia
- The discovery is just a few hundred metres from the swale the company was extensively exploring last year
- Swale’s are natural depressions in the landscape, which are known to often accompany gravel gold
- The company believes the hills surrounding Egina once hosted significant amounts of gold, and erosion over the years has spread the gold through the soil around the site
- Novo Resource (NVO) is down 0.59 per cent and is trading at C$3.37 per share, with a market cap of $640 million
Novo Resource Corp (TSXV:NVO) has uncovered a broad, gold bearing swale at the Egina mining lease in Western Australia.
The swale was located in north western section of the site.
Egina is located 120 kilometres East of the company’s flagship Karratha gold project, located in the Pilbara region.
The gold bearing swale was discovered a few hundred metres west of another swale the company tested extensively in 2019.
Identification of gold bearing gravel was completed at Novo’s mobile test plant, which has processed one tonne of bulk material at the site, thus far.
The discovery is located immediately north of a series of low hills that are capped by gold bearing conglomerates.
Novo believes that these conglomerates were once far more extensive, but the gold has since eroded away and fallen into the soil and swales surrounding them.
The next step for Novo is follow up bulk exploration to confirm grades.
Chairman and President of Novo Resources, Quinton Hennigh said the company was pleased its model of the Egina terrace was coming together.
“We are starting to see a pattern of gravel gold distribution that appears robust around Egina.
“Recently discovered broad gold bearing swales disco red at Paradise likely tie back to areas further south.
“This implies we have a network of swales nearly 10 kilometres wide and 17 kilometres from south to north to explore around Egina, a small part of our large land holdings across the expansive terrace,” he said.
Novo Resource Corp (NVO) is down 0.59 per cent and is trading at C$3.37 per share at 12:59 pm EDT.
